When an Employee’s Salary Changes: Immigration Implications

A salary increase or reduction is a common part of employment. Employees receive promotions, change positions, work fewer hours or negotiate new employment conditions. While these changes are generally handled by HR and payroll, they can also have important immigration implications when the employee holds a Dutch residence permit based on employment.

For employers hiring international talent, it is essential to understand how changes in salary can affect an employee’s right to reside and work in the Netherlands.

Why does salary matter for immigration?

Several Dutch residence permits for employment are subject to minimum salary requirements. This is particularly relevant for:

• Highly Skilled Migrants (Kennismigranten);
• European Blue Card holders;
• Certain other categories of international employees.

The Immigration and Naturalisation Service (IND) requires the employee to meet the applicable income criterion. In addition, the agreed salary must be in line with the market rate for the position.

This means that a change in salary should always be assessed from an immigration perspective, not just a contractual or financial one.

1. What happens when an employee receives a salary increase?

A salary increase will generally not create an immigration problem, provided the employee continues to meet the applicable permit conditions.

However, employers should consider a few points:

• Is the salary increase properly reflected in the employment contract or an addendum?
• Does the new salary consist of fixed and guaranteed payments?
• Is the salary still structured in accordance with the IND’s requirements?

A higher salary may also influence future immigration options, for example when an employee changes residence permit category or applies for a different type of permit.

It is therefore worth reviewing the employee’s immigration position when making significant changes to their employment conditions.

2. What if an employee’s salary decreases?

This is where employers need to be particularly careful.

A salary reduction may cause an employee to fall below the applicable minimum salary requirement for their residence permit.

This can happen in several situations, for example:

• An employee moves to a part-time position.
• Working hours are reduced.
• An employee accepts a lower-paid position within the organisation.
• A temporary salary reduction is agreed.
• An employee’s contractual salary is adjusted following organisational changes.

If the employee no longer meets the applicable income requirement, their residence permit may be affected.

Employers should therefore assess the consequences before implementing a salary reduction. Depending on the circumstances, the change may need to be reported to the IND.

3. Which salary threshold applies?

The applicable salary threshold depends on the type of residence permit and the employee’s circumstances.

For highly skilled migrants, the salary criteria are generally divided into different categories, including employees under 30, employees aged 30 or older and employees who qualify for the reduced salary criterion.

The EU Blue Card has its own salary requirements, including a reduced criterion for eligible recent graduates.

Importantly, salary thresholds are updated annually. However, the applicable threshold does not necessarily change automatically for every existing permit holder on 1 January.

The relevant threshold depends on the immigration procedure involved, such as an initial application, an extension or a change of employer.

Employers should therefore check the applicable threshold whenever an employee’s immigration situation changes.

4. What salary components count?

Not every payment made to an employee can be included when assessing whether the minimum salary requirement is met.

As a general rule, the IND looks at fixed, contractually agreed salary payments that are paid directly to the employee.

Certain fixed allowances may count, provided they meet the applicable conditions. For example, a fixed thirteenth-month payment may be included if it is paid in monthly instalments.

However, the following generally cannot be used to meet the salary threshold:

• Holiday allowance;
• Variable bonuses;
• Overtime payments;
• Uncertain allowances;
• Benefits in kind.

This is particularly important when an employee’s total annual remuneration appears sufficient, but their guaranteed monthly salary does not meet the required threshold.

5. What are the employer’s reporting obligations?

Employers who act as sponsors have specific obligations towards the IND.

Recognised sponsors must inform the IND of changes that may affect an employee’s residence permit. Most relevant changes must be reported within four weeks.

This includes situations where an employee no longer has sufficient income to live in the Netherlands or where their employment ends.

In addition, recognised sponsors have an obligation to maintain accurate records and must be able to demonstrate compliance with the applicable immigration requirements.

Failure to meet these obligations can result in administrative sanctions and, in serious cases, may affect the employer’s recognition as a sponsor.

6. How can employers prevent immigration issues?

Salary changes should be included in the organisation’s existing HR and immigration compliance processes.

We recommend that employers:

1. Review immigration conditions before approving salary changes. Check whether the proposed salary continues to meet the applicable requirements.
2. Assess the impact of changes in working hours. A move to part-time employment may affect the monthly salary used for immigration purposes.
3. Document contractual changes. Ensure salary adjustments are properly recorded in the employment contract or an addendum.
4. Check reporting obligations. Determine whether the change needs to be reported to the IND and within which timeframe.
5. Maintain accurate employee records. Keep contracts, amendments, payslips and relevant payment records up to date.
6. Review upcoming renewals. Check whether the employee will meet the salary requirements applicable at the time of extension.

Taking these steps can help employers avoid unnecessary immigration complications and protect the continuity of employment.

Conclusion: Salary changes require more than a payroll update

International employment involves more than meeting contractual and financial obligations. For employees holding an employment-based residence permit, even a seemingly straightforward salary adjustment can have immigration consequences.

By involving HR, payroll and immigration specialists before implementing changes, employers can identify potential risks early and ensure that international employees continue to meet the conditions of their residence permits.

How Move with IRIS can help you

At Move with IRIS, we support employers with immigration compliance and international workforce matters.

Whether you are hiring a highly skilled migrant, reviewing an employee’s residence permit conditions or considering changes to employment terms, we help you understand the immigration implications and identify the appropriate next steps.